Tax levies are IRS actions that allow the agency to seize your assets—such as bank accounts, investments, or other property—to collect unpaid tax debt. Unlike wage garnishments, levies target broader assets and can drain funds or freeze accounts until the debt is resolved.

Tax levies create significant financial disruption by:

• Freezing or withdrawing funds from bank accounts, impacting daily expenses.

• Seizing other assets, like vehicles or investments, to satisfy the debt.

• Continuing until the underlying tax obligation is paid or negotiated, potentially for years.

They often follow unpaid back taxes, unfiled returns, or ignored IRS notices, requiring prompt action to stop.

You can address tax levies in several ways:

 

• Do It Yourself: Request a release by submitting Form 942 or contacting the IRS, proving financial hardship or proposing a payment plan. This requires understanding IRS criteria, gathering financial documents, and meeting deadlines—errors can prolong the levy or lead to denial.

• Work with the IRS Directly: Call or write to the IRS to negotiate, providing income and expense details to stop the levy. This demands precise preparation and knowledge of IRS rules, which can be challenging without expertise.

• • Hire a Tax Professional: A professional is the best way to stop tax levies. They assess your situation, submit the necessary forms, and negotiate with the IRS to release the levy. If your tax debt includes penalties or multiple years, a professional can also resolve the underlying debt through payment plans or other relief options.